In India, having a health insurance policy in your 20s is imperative given the increase in health risks, changing lifestyle and increase in cost for health care treatments. After the COVID-19 pandemic outbreak, the demand for health insurance has significantly increased in India. Ankit Agrawal, Co-founder and CEO, InsuranceDekho, shares, “In FY 2020-21, India saw a significant increase in the retail of health insurance policy by a massive jump of 28.5% which continued to grow in the FY 2021-22 by 25.9%. The COVID-19 pandemic has surely made people realize the indispensability of a health insurance policy.” 

Sharing his knowledge on Why Buying A Health Insurance In Your 20s Is A Good Idea, he adds, “However, it is often seen that many people do not realize the importance of having a health insurance policy, they only become conscious about it in their 30s and 40s and regret not purchasing a health insurance policy earlier.”

LOWER PREMIUMS

"If you purchase a health insurance policy when you are in your 20s, you will be able to avail of lower premium rates. The premium of a health insurance policy depends on the age of the insured members and increases with their age because the health risks also increase. Often it is advised to purchase a health insurance policy in your 20s to be able to avail of affordable health coverage. For example, if you purchase a health insurance plan with Rs. 5 Lakh coverage at the age of 24 years, you may have to pay Rs. 4,500 - 5,000 as premium. But if you purchase the same plan at the age of 35 years, you may have to pay a premium of Rs. 6,500 - 7,000 for the same coverage i.e. approx.45% more premium," he suggested.

SHORTER/NO WAITING PERIOD

"Waiting period in health insurance refers to the time period under which the insured can not make health insurance claims for specific illnesses, surgeries, or pre-existing medical conditions. Depending on the health insurance plan that you choose your waiting period can be somewhere between 2 to 4 years. When you choose to purchase a health insurance policy in your 20s, the waiting period of your health insurance plan will be minimum as the young ones are generally physically and medically fit," he said.

NO CLAIM BONUS

"Most of the insurers provide a bonus ranging from 10% to 50%, in the form of increased coverage, if no claim is filed during the policy tenure. You will be able to start accumulating a No Claim Bonus (NCB) early on by buying a health insurance policy timely. You can use this NCB in the later years of life when you might be more vulnerable to illnesses and may need to make a claim. But if you buy the policy during later years of life, then you would not be able to enjoy such increased coverage," he added.

TAX EXEMPTIONS

"Premiums paid towards family health and individual health insurance policy qualify for tax exemptions in India. Under Section 80D of the Income Tax Act, 1961, you can avail of tax exemptions for the premiums paid towards a health insurance policy. Purchasing a health insurance policy in your 20s implies that you can start saving taxes early and avail of tax benefits for a longer period of time. This is one of the biggest benefits of having a health insurance policy," he explained.

COMPREHENSIVE COVERAGE

"People who are in their 20s and are seeking health insurance policy can avail comprehensive coverage at affordable premium rates. When you purchase a health insurance policy at an early age, you can ensure there is no possibility of a pre-existing medical condition, you may be physically and medically fit," he explained.

TAKE AWAY

You must have heard people saying that ‘Time waits for no one. So the correct time to purchase a health insurance policy can be only when you come to realize that medical treatments may only increase in the future given the increasing health risks and changing lifestyle. It is advised to purchase a health insurance policy at an early age to avail the benefits of the health insurance policy for a long time period," he concluded.